Technological advances are changing the way we live and work. The arrival of the Internet of Things is one example of how technology has changed our lives in recent years. For example, devices such as the Amazon Echo serve as personal assistants to help us simplify our personal lives – doing things like helping us to cook, clean, and check the weather. Some other examples of technology improving our lives include ride-sharing services and popular mobile payment applications. For example, Uber and Lyft allow people to get from point A to point B and pay for their ride with the tap of a button while the mobile application Venmo provides a way for people to pay one another electronically.
Not only are these advances in technology shaping how we live and work, they’re also changing how businesses reimburse their employees for their business mileage. In fact, they’re making it much simpler to reimburse your employees. Implementing mileage automation software for your mobile workforce has never been easier and will positively impact your organization in three important ways.
Here are the three main ways your company can benefit from implementing mileage automation software:
1. Cost Savings
Manual mileage reporting techniques (typically hand-written paper logs or spreadsheets) are outdated and cost companies significantly. In addition to being costly to your business, if your employees are estimating their mileage each month, chances are their mileage logs are inaccurate. As you’d imagine, this creates a host of problems. Your business will end up over or under-reimbursing employees and your workforce will have a collection of non-compliant mileage logs that don’t cover your organization in the event of an audit.
Complicating matters further, many companies that have a manual mileage reporting process administer a cents-per-mile or flat allowance reimbursement program, both of which don’t reimburse employees fairly and accurately. These programs offer a pre-determined, set reimbursement and don’t account for where an employee drives geographically and how many business miles they accumulate for a given month. Using an automated platform, these problems disappear. Your mobile employees would then have accurate, compliant mileage logs, which benefits your company in a couple of ways. First, with this type of solution, each employee receives a custom reimbursement for the exact cost of doing business while eliminating FICA taxes. Second, this solution also safeguards your company from a compliance standpoint. Here’s some information that shows how automation has benefitted the businesses we work with. First, more than half of the businesses that transitioned from self-reported mileage to Motus realized an average of 20% savings in overall costs. With these cost savings, 85% of our surveyed clients were able to reinvest those funds into other areas of their business. The bottom line here is that numbers don’t lie. Automation saves businesses on their bottom line.
2. Real-Time Data and Business Insights
When your organization switches to an automated solution, you also get a leg up on the competition. You will be able to keep an eye on the efficiency of your employees, your reimbursement payout history, IRS and company compliance, route optimization, and trip/stop durations. All of this allows you to make more accurate budgeting forecasts, improve employee and overall company performance, and maximize your return on investments.
Having the ability to monitor this data on-demand is powerful for your organization. Your company will be able to eliminate long-term inefficiencies as well as find new sources of growth, cut costs and ensure compliance. With these business insights, you will then be able to take a step back and see the big picture of how your business is operating and how you can improve to be the leader in your industry.
3. Visibility into Field Activity
Another key advantage to automation is that your business will gain insight into field activity. With automated mileage tracking, your employees know they are being held accountable for the miles they actually drive as well as the actual locations they travel to for business. This creates trust across your organization, and reduces any doubt or uncertainty of where an employee drove and how many miles it required to get there.
Automation makes life simpler for your mobile employees. They will have fewer daily administrative tasks to complete, allowing for increased productivity and a morale boost for your entire workforce.
The Bottom Line
Implementing mileage automation software offers several advantages to your organization. This switch will save your company money and it will also provide real-time data and business insights to improve overall company performance. These insights will also help to keep pace with competitors and allow for increased field visibility for managers. It’s time to get with the times and the technology that comes with it — out with the old, in with the new.